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China-Australia ink FTA to aid market expansion
June 17, 2015, 6:15 am

Chinese President Xi Jinping (4th L, front) and Australian Prime Minister Tony Abbott (3rd L, front) attend the unveiling ceremony for the Beijing Garden in Canberra, the Chinese culture center in Sydney and the Chinese library of the library of Sydney's University of Technology, in Canberra, capital of Australia, Nov. 17, 2014 [Xinhua]

Chinese President Xi Jinping (4th L, front) and Australian Prime Minister Tony Abbott (3rd L, front) attend the unveiling ceremony for the Beijing Garden in Canberra, the Chinese culture center in Sydney and the Chinese library of the library of Sydney’s University of Technology, in Canberra, capital of Australia, Nov. 17, 2014 [Xinhua]

China and Australia have inked a landmark free trade agreement in Canberra on Wednesday, lifting most import tariffs in the two countries.

The FTA will mean 85 per cent of Australian goods exports to China will be tariff free, rising to 95 per cent when fully implemented.

Australia’s Trade Minister Andrew Robb and China’s Commerce Minister Gao Hucheng signed the document on Wednesday after ten years of negotiations.

Tariffs will be removed from some resources and energy including aluminum oxide and coking coal, and phased out on thermal coal over two years.

The Declaration of Intent was signed in November by the two countries’ leaders, Tony Abbott and Xi Jinping.

In Canberra, Australian Prime Minister Abbott on Wednesday said the “unprecedented” and “monumental” pact was the “next chapter” in strong relations between the two countries.

“This deal today is history-making for both our countries,” he said. “It will change our countries for the better. It will change our region for the better. It will change our world for the better.

The deal will ease investment rules for Chinese private companies in Australia by raising the Foreign Investment Review Board’s screening threshold in non-sensitive areas to A$1.08 billion from A$248 million.

Bilateral trade in 2014 exceeded $135 billion – almost a quarter of Australia’s total international trade.

Trade with China accounted for 5.5 per cent of Australia’s GDP in 2014, says official data.

Australia is among the few developed countries which have supported the Chinese currency yuan’s bid to be included by the IMF as a global reserve currency.

Australia has also signed up to the China-led Asian Infrastructure Investment Bank.

 TBP and Agencies